A Producer Might Use a Pulling Policy Rather Than a Pushing

question 43

Multiple Choice

A producer might use a pulling policy rather than a pushing policy if

• A)intermediaries are reluctant to handle a new product.
• B)it is offering a very high-tech product to a small product-market.
• C)its sales force has been very successful getting wholesalers and retailers to handle its product.
• D)it has a very limited promotion budget.
• E)All these answers are correct.

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Definitions:

Holding Cost

Expenses related to storing inventory, including warehousing, insurance, and depreciation.

Weekly Demand

The total quantity of a product that consumers are willing and able to purchase over the course of a week.

Tailored Sourcing

Procurement approach focusing on obtaining goods or services that are customized to meet specific needs or criteria of a business.

Supply Sources

Supply Sources are the origins from which goods, materials, or services are obtained, essential for production and operational processes in businesses.